TAXMAN Posted March 25, 2008 Report Share Posted March 25, 2008 Is a realtor who gives a gift of a Wal-Mart card to a client upon closing subject to the same rule as an employee with business expences? ie $25.00 cap? thanks. Brain Dead and I should know this answer. I may think that in these days anything to get a client to the closing table should be deductible. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 25, 2008 Report Share Posted March 25, 2008 >>anything to get a client to the closing table should be deductible<< Unfortunately, the law that allows a deduction for business gifts was not indexed for inflation. It remains at $25 per person per year. Every business person thinks their own situation should be an exception, but no. Once again we need to be mindful that when a deal only makes economic sense if you get a tax break, it is fundamentally not a good deal. Depending on how desperate the taxpayer is, there may be creative ways to stretch the limits. A married couple can get two $25 gifts. The listing and selling agents can each make gifts, and perhaps their brokers can too. Cash or equivalent (like a Walmart card) could be considered a rebate of commission instead of a gift. These strategies should be thought out ahead of time; they make weak arguments after-the-fact. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 25, 2008 Report Share Posted March 25, 2008 Quid pro quo, if the giver except sometime in return, a referral, a good review, it is not a gift. Dunnegan v. Commissioner, T.C. Memo 2002-119 Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 25, 2008 Report Share Posted March 25, 2008 Quid pro quo, if the giver except sometime in return, a referral, a good review, it is not a gift. Dunnegan v. Commissioner, T.C. Memo 2002-119 I give my favorite clients a frickin banana Quote Link to comment Share on other sites More sharing options...
mdmcfarland Posted March 25, 2008 Report Share Posted March 25, 2008 Do you give them 2 frickin bananas if it is a married couple? And what if they have a litter of kids - do you give them the whole "bunch"? Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 25, 2008 Report Share Posted March 25, 2008 Do you give them 2 frickin bananas if it is a married couple? And what if they have a litter of kids - do you give them the whole "bunch"? Obviously you are not aware of the frickin regulations that prohibit more than one frickin banana per household unless you have obtained a frickin babana license. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 25, 2008 Report Share Posted March 25, 2008 Banana? What happen to the cookies? Quote Link to comment Share on other sites More sharing options...
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